Exhibit 99.1
General Steel Announces Second Quarter 2010 Results
Total revenues increased approximately 23% year-over-year to $502 million
BEIJING, Aug. 6 /PRNewswire-Asia-FirstCall/ -- General Steel Holdings, Inc. ("General Steel" or "the Company") (NYSE: GSI), one of China's leading
non-state-owned producers of steel products and aggregators of domestic steel companies, today announced its financial results for the second quarter ended June 30, 2010.
Second Quarter of 2010 Highlights
-- | Total revenues increased 22.7% to $501.7 million from $408.9 million inthe second quarter of 2009 |
-- | Aggregate shipment volume reached 1.01 million metric tons, an increase of 6.8% year-over-year |
-- | Gross margin was 1.5%, compared to 1.3% in the previous quarter and 5.5% in the second quarter of 2009 |
-- | On May 13, 2010, the Company entered into a Joint Venture Framework Agreement with Shanxi Meijin Energy Group Co., Ltd. |
First Half of 2010 Highlights
-- | Total revenues increased 30.5% to a record $954.7 million from $731.7 million in the first half of 2009 |
-- | Aggregate shipment volume reached 2.05 million metric tons, an increase of 22.3% year-over-year |
-- | Gross margin was 1.4%, compared to 4.8% in the first half of 2009 |
"Demand continues to be robust," said General Steel's Chairman and Chief Executive Officer Henry Yu. "Located in central China, our largest subsidiary, Longmen Joint Venture, is relatively insulated from the slowdown in the real estate industry and allows us to continue benefiting from infrastructure development projects in western China. In fact, this year alone, there are over 235 construction and infrastructure projects scheduled to begin in Shaanxi province, including nine new railways, one new airport, the expansion of the Xi'an airport, two new ring subway systems and four new dams. These projects will take place over many years and drive our growth in the quarters and years to come. In the meantime, the industry continues to experience ups and downs as average selling prices and key input costs for iron ore and coking coal continue to fluctuate. Regardless, our focus is to continue vetting high-quality acquisition targets while putting an equal effort on controlling our costs and increasing profitability. The fundamentals of our business remain strong and I'm confident in our ability to deliver long-term shareholder value."
Selected Financial Results for the Second Quarter and First Half of 2010
Total revenues for the second quarter of 2010 increased 22.7% to $501.7 million from $408.9 million in the second quarter of 2009. Total revenues for the first half of 2010 increased 30.5% to $954.7 million from $731.7 million in the first half of 2009.
The increase in total revenues was predominantly due to an increase in both shipment volume and average selling prices for rebar at the Company's Longmen Joint Venture ("Longmen JV").
Cost of Sales
Total cost of sales for the second quarter of 2010 increased 27.9% to $494.3 million from $386.4 million in the second quarter of 2009. Total cost of sales for the first half of 2010 increased 35.2% to $941.6 million from $696.3 million in the first half of 2009. Cost of sales principally consists of the cost of raw materials, labor, utilities, manufacturing costs, manufacturing-related depreciation and other fixed costs. The increase in cost of sales was primarily due to an increase in total revenues.
Gross Profit
Gross profit for the second quarter of 2010 decreased 67.3% year-over-year to $7.4 million from $22.5 million. Gross profit for the first half of 2010 decreased 63.0% year-over-year to $13.1 million from $35.4 million. Gross margin for the second quarter of 2010 was 1.5%, compared to 5.5% in the second quarter of 2009. Gross margin for the first half of 2010 was 1.4%, compared to 4.8% in the first half of 2009.
The Company noted that gross profit was adversely affected by declining average selling prices which fell from the middle of April to the end of June and the price of iron ore and coke, which remained relatively high during the second quarter of 2010.
Operating Expenses
Selling, general and administrative expenses for the second quarter of 2010 increased 43% to $13.7 million, compared to $9.6 million in the second quarter of 2009. Selling, general and administrative expenses for the first half of 2010 increased 37.8% to $25.8 million from $18.7 million in the first half of 2009. Selling, general and administrative expenses were 2.7% and 2.3% of total revenues in the second quarter of 2010 and 2009, respectively, and 2.7% and 2.6% of total revenues in the first half of 2010 and 2009, respectively. The Company noted that the increase is mainly due to higher transportation and agent charges at the Longmen Joint Venture following shipping volume increases.
Finance and interest expenses for the second quarter of 2010 were $16.5 million, compared to $11.3 million in the second quarter of 2009. Finance and interest expenses for the first half of 2010 were $27.4 million, compared to $14.2 million in the first half of 2009. The Company noted that the year-over-year increases were caused by a combination of additional finance and interest expenses and gains on a change in fair value of derivative liabilities.
Net Income
Net loss attributable to General Steel Holdings, Inc. for the second quarter of 2010 was $2.1 million compared to a net loss of $31.8 million in the second quarter of 2009. Net loss attributable to General Steel Holdings, Inc. for the first half of 2010 was $7.6 million compared to net loss of $24.5 million in the first half of 2009.
Basic and diluted losses per share for the second quarter of 2010 were $0.041 compared to basic and diluted losses per share of $0.80 in the second quarter of 2009. Basic and diluted losses per share for the first half of 2010 were $0.15 compared to basic and diluted losses per share of $0.64 in the first half of 2009.
Balance Sheet
As of June 30, 2010, General Steel had cash and restricted cash of $320.4 million, compared to $274.2 million as of December 31, 2009. Accounts receivable was $21.4 million as of June 30, 2010, compared to $8.5 million as of December 31, 2009. Convertible notes payable increased to $1.3 million as of June 30, 2010, compared to $1.1 million as of December 31, 2009.
The Company had an inventory balance of $281.3 million as of June 30, 2010 compared to $208.1 million on December 31, 2009. This balance is comprised of raw materials and finished products.
On August 5, 2010, remaining notes outstanding from the Company's December 13, 2007 private placement have been converted into a total of 1,559,675 shares of Common Stock.
As of today, all of the convertible promissory notes issued on December 13, 2007 have now been converted into Common Stock.
Conference Call
General Steel management will hold an earnings conference call at 8:00 a.m. U.S. Eastern Time on August 6, 2010 (8:00 p.m. Beijing/Hong Kong Time on August 6, 2010). Management will discuss results and highlights from the quarter and answer questions. The dial-in number and passcode for the conference call are as follows:
U.S. Toll Free: +1-800-860-2442
Passcode: General Steel Holdings
The conference call will be broadcast live over the Internet and can be accessed by clicking the following link: http://www.corpasia.net/cancast/us/index.php?id=usGSI_1&version=e
Additionally, an archived Web cast of this call will be available on General Steel's website at http://www.gshi-steel.com .
About General Steel Holdings, Inc.
General Steel Holdings, Inc., (NYSE: GSI), headquartered in Beijing, China, operates a diverse portfolio of Chinese steel companies. With 6.3 million metric tons aggregate production capacity, its companies serve various industries and produce a variety of steel products including rebar, hot-rolled carbon and silicon sheet, high-speed wire and spiral-weld pipe. General Steel Holdings, Inc. has steel operations in Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin municipality. For more information, please visit http://www.gshi-steel.com.
Information Regarding Forward-Looking Statements
This press release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations or beliefs about future events and financial, political and social trends and assumptions it has made based on information currently available to it. The Company cannot assure that any expectations, forecasts or assumptions made by management in preparing these forward-looking statements will prove accurate, or that any projections will be realized. Such forward-looking statements may be affected by inaccurate assumptions or by known or unknown risks or uncertainties. Actual results may vary materially from those expressed or implied by the statements herein. For factors that could cause actual results to vary, perhaps materially, from these forward-looking statements, please refer to the Company's Form 10-K, filed with the Securities and Exchange Commission, and other subsequent filings. Forward-looking statements contained herein speak only as of the date of this release. The Company does not undertake any obligation to update or revise publicly any forward-looking statements, whether to reflect new information, future events or otherwise.
For investor and media inquiries, please contact:
In China:
Ms. Jing Ou-Yang
General Steel Holdings, Inc.
Tel: +86-10-5879-7346
Email: jing.ouyang@gshi-steel.com
Mr. Justin Knapp
Ogilvy Financial, Beijing
Tel: +86-10-8520-6556
Email: gsi@ogilvy.com
In the United States:
Ms. Jessica Barist Cohen
Ogilvy Financial, New York
Tel: +1-646-460-9989
Email: gsi@ogilvy.com
GENERAL STEEL HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2010 AND DECEMBER 31, 2009
(In thousands, except per share data)
ASSETS
June 30, | December 31, | |||||||
2010 | 2009 | |||||||
(Unaudited) | ||||||||
CURRENT ASSETS: | ||||||||
Cash | $ | 50,772 | $ | 82,118 | ||||
Restricted cash | 269,670 | 192,041 | ||||||
Notes receivable | 56,355 | 29,185 | ||||||
Restricted notes receivable | 24,324 | |||||||
Accounts receivable, net | 20,759 | 8,525 | ||||||
Accounts receivable - related party | 734 | |||||||
Other receivables, net | 8,887 | 5,357 | ||||||
Other receivables - related parties | 30,556 | 32,670 | ||||||
Dividend receivable | 5,940 | 2,372 | ||||||
Inventories | 281,276 | 208,087 | ||||||
Advances on inventory purchase | 40,085 | 28,407 | ||||||
Advances on inventory purchase - | ||||||||
related parties | 8,798 | 2,995 | ||||||
Prepaid expense | 5,409 | 690 | ||||||
Prepaid value added tax | 17,075 | 19,488 | ||||||
Deferred tax assets | 8,775 | 3,341 | ||||||
Total current assets | 829,415 | 615,276 | ||||||
PLANT AND EQUIPMENT, net | 566,202 | 555,111 | ||||||
OTHER ASSETS: | ||||||||
Advances on equipment purchase | 18,618 | 8,419 | ||||||
Investment in unconsolidated | ||||||||
subsidiaries | 12,751 | 20,022 | ||||||
Long-term deferred expense | 2,069 | |||||||
Intangible assets, net of | ||||||||
accumulated amortization | 23,400 | 23,733 | ||||||
Note issuance cost | 392 | 406 | ||||||
Plant and equipment to be disposed | 2,800 | 3,026 | ||||||
Total other assets | 57,961 | 57,675 | ||||||
TOTAL ASSETS | $ | 1,453,578 | $ | 1,228,064 | ||||
LIABILITIES AND EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Short term notes payable | $ | 388,080 | $ | 254,608 | ||||
Accounts payable | 194,478 | 158,126 | ||||||
Accounts payable - related parties | 85,128 | 48,151 | ||||||
Short term loans - bank | 177,404 | 148,968 | ||||||
Short term loans - others | 97,902 | 110,358 | ||||||
Short term loans - related parties | -- | 11,751 | ||||||
Other payables and accrued | ||||||||
liabilities | 19,769 | 16,222 | ||||||
Other payable - related parties | 24,085 | 3,706 | ||||||
Customer deposit | 186,589 | 208,765 | ||||||
Customer deposit - related parties | 28,514 | 3,791 | ||||||
Deposit due to sales representatives | 67,884 | 49,544 | ||||||
Taxes payable | 6,020 | 6,921 | ||||||
Distribution payable to former | ||||||||
shareholders | 12,862 | 16,434 | ||||||
Total current liabilities | 1,288,715 | 1,037,345 | ||||||
CONVERTIBLE NOTES PAYABLE, net of debt discount of $2,019 and $2,250 as of June 30, 2010 and December 31, 2009, respectively | 1,281 | 1,050 | ||||||
DERIVATIVE LIABILITIES | 8,672 | 23,340 | ||||||
Total liabilities | 1,298,668 | 1,061,735 | ||||||
COMMITMENT AND CONTINGENCIES | ||||||||
EQUITY: | ||||||||
Preferred stock, $0.001 par value, 50,000,000 shares authorized, 3,092,899 shares issued and outstanding as of June 30, 2010 and December 31, 2009, respectively | 3 | 3 | ||||||
Common Stock, $0.001 par value, 200,000,000 shares authorized, 52,952,508 and 51,618,595 shares issued and outstanding as of June 30, 2010 and December 31, 2009, respectively | 53 | 52 | ||||||
Paid-in-capital | 99,498 | 95,588 | ||||||
Statutory reserves | 6,541 | 6,162 | ||||||
Accumulated deficits | (24,047 | ) | (16,412 | ) | ||||
Accumulated other comprehensive income | 8,398 | 8,336 | ||||||
Total shareholders' equity | 90,446 | 93,729 | ||||||
NONCONTROLLING INTERESTS | 64,465 | 72,598 | ||||||
Total equity | 154,911 | 166,327 | ||||||
TOTAL LIABILITIES AND EQUITY | $ | 1,453,578 | $ | 1,228,062 |
GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATION AND OTHER COMPREHENSIVE INCOME
(UNAUDITED)
(In thousands, except per share data)
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
REVENUES | $ | 383,173 | $ | 324,461 | $ | 700,801 | $ | 586,875 | ||||||||
REVENUES - RELATED PARTIES | 118,506 | 84,486 | 253,901 | 144,866 | ||||||||||||
TOTAL REVENUES | 501,679 | 408,947 | 954,702 | 731,741 | ||||||||||||
COST OF REVENUES | 369,437 | 301,849 | 687,013 | 553,851 | ||||||||||||
COST OF REVENUES - RELATED PARTIES | 124,882 | 84,599 | 254,596 | 142,469 | ||||||||||||
TOTAL COST OF REVENUES . | 494,319 | 386,448 | 941,609 | 696,320 | ||||||||||||
GROSS PROFIT | 7,360 | 22,499 | 13,093 | 35,421 | ||||||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES . | 13,677 | 9,564 | 25,818 | 18,732 | ||||||||||||
(LOSS) INCOME FROM OPERATIONS | (6,317 | ) | 12,935 | (12,725 | ) | 16,689 | ||||||||||
OTHER INCOME(EXPENSE) | ||||||||||||||||
Interest income | 617 | 764 | 1,737 | 1,642 | ||||||||||||
Finance/interest | ||||||||||||||||
expense | (16,464 | ) | (11,309 | ) | (27,427 | ) | (14,247 | ) | ||||||||
Change in fair value | ||||||||||||||||
of derivative | ||||||||||||||||
liabilities | 10,729 | (26,726 | ) | 14,668 | (22,611 | ) | ||||||||||
Gain from debt | ||||||||||||||||
extinguishment | -- | -- | -- | 2,930 | ||||||||||||
Government grant | -- | -- | -- | 3,520 | ||||||||||||
Income from equity | ||||||||||||||||
investments | 3,074 | 2,753 | 4,756 | 2,698 | ||||||||||||
Other non-operating | ||||||||||||||||
income, net | 571 | 142 | 567 | 652 | ||||||||||||
Total other | ||||||||||||||||
expense, net | (1,473 | ) | (34,376 | ) | (5,699 | ) | (25,416 | ) | ||||||||
LOSS BEFORE PROVISION FOR | ||||||||||||||||
INCOME TAXES AND | ||||||||||||||||
NONCONTROLLING INTEREST . | (7,790 | ) | (21,442 | ) | (18,424 | ) | (8,728 | ) | ||||||||
PROVISION FOR INCOME TAXES | ||||||||||||||||
Current | (5,093 | ) | 3,230 | (4,472 | ) | 3,394 | ||||||||||
Deferred | 2,253 | (1,222 | ) | (335 | ) | -- | ||||||||||
Total (benefit) | ||||||||||||||||
provision for | ||||||||||||||||
income taxes | (2,840 | ) | 2,008 | (4,807 | ) | 3,394 | ||||||||||
NET LOSS BEFORE | ||||||||||||||||
NONCONTROLLING INTEREST . | (4,950 | ) | (23,450 | ) | (13,617 | ) | (12,122 | ) | ||||||||
Less: Net (Loss) income | ||||||||||||||||
attributable to | ||||||||||||||||
noncontrolling interest . | (2,822 | ) | 8,340 | (5,982 | ) | 12,333 | ||||||||||
NET LOSS ATTRIBUTABLE TO | ||||||||||||||||
CONTROLLING INTEREST | (2,128 | ) | (31,790 | ) | (7,635 | ) | (24,455 | ) | ||||||||
OTHER COMPREHENSIVE INCOME | ||||||||||||||||
(LOSS) | ||||||||||||||||
Foreign currency | ||||||||||||||||
translation | ||||||||||||||||
adjustments | 361 | 163 | 62 | (14 | ) | |||||||||||
Comprehensive income | ||||||||||||||||
(loss) attributable to | ||||||||||||||||
noncontrolling | ||||||||||||||||
interest | (1 | ) | (1,031 | ) | 164 | (1,106 | ) | |||||||||
COMPREHENSIVE LOSS | $ | (1,768 | ) | $ | (32,658 | ) | $ | (7,409 | ) | $ | (25,575 | ) | ||||
WEIGHTED AVERAGE NUMBER | ||||||||||||||||
OF SHARES | ||||||||||||||||
Basic & Diluted | 52,111,605 | 39,533,099 | 51,883,491 | 37,918,177 | ||||||||||||
LOSS PER SHARE | ||||||||||||||||
Basic & Diluted | $ | (0.04 | ) | $ | (0.80 | ) | $ | (0.15 | ) | $ | (0.64 | ) |
GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30,
(UNAUDITED)
(In thousands, except per share data)
Six months ended June 30, | ||||||||
2010 | 2009 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net loss attributable to controlling | ||||||||
interest | $ | (7,635 | ) | $ | (24,455 | ) | ||
Net (loss) income attributable to | ||||||||
noncontrolling interest | (5,982 | ) | 12,333 | |||||
Consolidated net loss | (13,617 | ) | (12,122 | ) | ||||
Adjustments to reconcile net loss to | ||||||||
cash (used in) provided by | ||||||||
operating activities: | ||||||||
Depreciation and amortization | 19,334 | 13,478 | ||||||
Debt extinguishment | (2,930 | ) | ||||||
Inventory written-off | 6,528 | |||||||
Impairment of long-lived assets | 1,733 | |||||||
(Gain) Loss on disposal of equipment . | 123 | (3,431 | ) | |||||
Stock issued for services and | ||||||||
compensation | 1,507 | 636 | ||||||
Make whole shares interest expense | ||||||||
on notes conversion | 6,455 | |||||||
Income from investment | (4,756 | ) | (2,699 | ) | ||||
Amortization of deferred note | ||||||||
issuance cost and discount on | ||||||||
convertible notes | 13 | 43 | ||||||
Change in fair value of derivative | ||||||||
instrument | (14,668 | ) | 22,612 | |||||
Deferred tax assets | (5,501 | ) | 2,166 | |||||
Changes in operating assets and | ||||||||
liabilities | ||||||||
Notes receivable | (26,939 | ) | 4,915 | |||||
Accounts receivable | (12,047 | ) | (7,924 | ) | ||||
Accounts receivable - related parties | (1,015 | ) | 0 | |||||
Other receivables | (1,570 | ) | (362 | ) | ||||
Other receivables - related parties | 2,300 | (14,993 | ) | |||||
Inventories | (85,941 | ) | (84,204 | ) | ||||
Advances on inventory purchases | (11,512 | ) | 11,271 | |||||
Advances on inventory purchases - | ||||||||
related parties | (5,431 | ) | (13,021 | ) | ||||
Accounts payable | 35,734 | 59,067 | ||||||
Accounts payable - related parties | 37,605 | 15,283 | ||||||
Other payables and accrued liabilities | 2,426 | 19,183 | ||||||
Other payables - related parties | 20,495 | 15,749 | ||||||
Customer deposits | (20,269 | ) | 16,160 | |||||
Customer deposits - related parties | 25,081 | (3,574 | ) | |||||
Taxes payable | 4,966 | (12,769 | ) | |||||
Net cash (used in) provided by | ||||||||
operating activities | (45,421 | ) | 28,990 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Acquired long term investment | (1,273 | ) | (6,593 | ) | ||||
Cash proceeds from disposal of long- | ||||||||
term investment | 3,667 | |||||||
Dividend receivable | (1,554 | ) | ||||||
Long term other receivables | 1,215 | |||||||
Deposits due to sales | ||||||||
representatives | 18,663 | 31,933 | ||||||
Cash proceeds from sales of | ||||||||
equipment | 60 | 4,414 | ||||||
Advance on equipment purchases | (10,268 | ) | 3,065 | |||||
Equipments purchase and intangible | ||||||||
assets | (29,240 | ) | (60,388 | ) | ||||
Payments to original shareholders | (2,460 | ) | ||||||
Net cash used in investing | ||||||||
activities | (22,405 | ) | (26,354 | ) | ||||
CASH FLOWS FINANCING ACTIVITIES: | ||||||||
Restricted cash | (76,526 | ) | ||||||
Notes receivable - restricted | (24,223 | ) | (69,727 | ) | ||||
Borrowings on short term loans - | ||||||||
bank | 133,196 | 72,816 | ||||||
Payments on short term loans - bank | (105,485 | ) | (43,353 | ) | ||||
Borrowings on short term loan - | ||||||||
others | 72,083 | 79,354 | ||||||
Payments on short term loans - | ||||||||
others | (89,878 | ) | (63,899 | ) | ||||
Payments on short term loans - | ||||||||
others-related parties | (4,401 | ) | 2,931 | |||||
Borrowings on short term notes | ||||||||
payable | 408,476 | 371,614 | ||||||
Payments on short term notes payable | (276,594 | ) | (303,327 | ) | ||||
Net cash provided by financing | ||||||||
activities | 36,648 | 46,409 | ||||||
EFFECTS OF EXCHANGE RATE CHANGE IN CASH | (168 | ) | (9 | ) | ||||
(DECREASE) INCREASE IN CASH | (31,346 | ) | 49,036 | |||||
CASH, beginning of period | 82,118 | 14,895 | ||||||
CASH, end of period | $ | 50,772 | $ | 63,931 |
GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(In thousands, except per share data)
Preferred stock | Common stock | ||||||||||||||||||||
Paid-in | |||||||||||||||||||||
Shares | Par value | Shares | Par value | capital | |||||||||||||||||
BALANCE, December 31, 2008 | 3,092,899 | $ | 3.00 | $ | 36,128,833 | $ | 36.00 | $ | 37,129 | ||||||||||||
Net loss | |||||||||||||||||||||
attributable to | |||||||||||||||||||||
controlling | |||||||||||||||||||||
interest | |||||||||||||||||||||
Net income | |||||||||||||||||||||
attributable to | |||||||||||||||||||||
noncontrolling | |||||||||||||||||||||
interest | |||||||||||||||||||||
Disposal of | |||||||||||||||||||||
subsidiaries | |||||||||||||||||||||
Distribution of | |||||||||||||||||||||
dividend to | |||||||||||||||||||||
noncontrolling | |||||||||||||||||||||
shareholders | |||||||||||||||||||||
Adjustment to | |||||||||||||||||||||
statutory reserve | |||||||||||||||||||||
Common stocks | |||||||||||||||||||||
issued for | |||||||||||||||||||||
compensation | 216,000 | 0.22 | 498 | ||||||||||||||||||
Common stock issued | |||||||||||||||||||||
for interest | |||||||||||||||||||||
payment | 152,240 | 0.15 | 558 | ||||||||||||||||||
Common stock issued | |||||||||||||||||||||
for repayment of | |||||||||||||||||||||
debt | 300,000 | 0.30 | 1,800 | ||||||||||||||||||
Common stock | |||||||||||||||||||||
transferred by CEO | |||||||||||||||||||||
for compensation | 138 | ||||||||||||||||||||
Notes converted to | |||||||||||||||||||||
common stock | 5,104,596 | 5.11 | 24,125 | ||||||||||||||||||
Make whole shares | |||||||||||||||||||||
issued on notes | |||||||||||||||||||||
conversion | 1,399,759 | 1.40 | 5,565 | ||||||||||||||||||
Reduction of | |||||||||||||||||||||
Registered Capital | |||||||||||||||||||||
Foreign currency | |||||||||||||||||||||
translation | |||||||||||||||||||||
adjustments |
BALANCE, June 30, | |||||||||||||||||||||
2009, unaudited | 3,092,899 | $ | 3.00 | 43,301,428 | $ | 43.00 | $ | 69,813 |
Preferred stock | Common stock | ||||||||||||||||||||
Paid-in | |||||||||||||||||||||
Shares | Par value | Shares | Par value | capital |
Net loss | |||||||||||||||||||||
attributable to | |||||||||||||||||||||
controlling | |||||||||||||||||||||
interest | |||||||||||||||||||||
Net income | |||||||||||||||||||||
attributable to | |||||||||||||||||||||
noncontrolling | |||||||||||||||||||||
interest | |||||||||||||||||||||
Distribution of | |||||||||||||||||||||
dividend to | |||||||||||||||||||||
noncontrolling | |||||||||||||||||||||
shareholders | |||||||||||||||||||||
Adjustment to | |||||||||||||||||||||
statutory reserve | |||||||||||||||||||||
Common stock issued | |||||||||||||||||||||
for compensation | 380,650 | 0.55 | 1,377 | ||||||||||||||||||
Common stock issued | |||||||||||||||||||||
for interest | |||||||||||||||||||||
payments | 44,065 | 0.05 | 187 | ||||||||||||||||||
Common stock | |||||||||||||||||||||
transferred by CEO | |||||||||||||||||||||
for compensation | 138 | ||||||||||||||||||||
Notes converted to | |||||||||||||||||||||
common stock | 1,940,678 | 1.95 | 7,947 | ||||||||||||||||||
Make whole shares | |||||||||||||||||||||
issued on notes | |||||||||||||||||||||
conversion | 396,218 | 0.40 | 1,520 | ||||||||||||||||||
Common stock issued | |||||||||||||||||||||
for private | |||||||||||||||||||||
placement | 5,555,556 | 5.56 | 14,606 | ||||||||||||||||||
Foreign currency | |||||||||||||||||||||
translation | |||||||||||||||||||||
adjustments |
BALANCE, December | |||||||||||||||||||||
31, 2009 | 3,092,899 | $ | 3.00 | 51,618,595 | $ | 51.51 | $ | 95,588 | |||||||||||||
Net loss | |||||||||||||||||||||
attributable to | |||||||||||||||||||||
controlling | |||||||||||||||||||||
interest | |||||||||||||||||||||
Net loss | |||||||||||||||||||||
attributable to | |||||||||||||||||||||
noncontrolling | |||||||||||||||||||||
interest | |||||||||||||||||||||
Distribution of | |||||||||||||||||||||
dividend to | |||||||||||||||||||||
noncontrolling | |||||||||||||||||||||
shareholders | |||||||||||||||||||||
Noncontrolling | |||||||||||||||||||||
interest acquired | |||||||||||||||||||||
Adjustment to | |||||||||||||||||||||
special reserve | |||||||||||||||||||||
Common stock issued | |||||||||||||||||||||
for compensation | 405,750 | 0.41 | 1,369 | ||||||||||||||||||
Common stock issued | |||||||||||||||||||||
for repayment of | |||||||||||||||||||||
debt | 928,163 | 0.93 | 2,403 | ||||||||||||||||||
Common stock | |||||||||||||||||||||
transferred by CEO | |||||||||||||||||||||
for compensation | 138 | ||||||||||||||||||||
Foreign currency | |||||||||||||||||||||
translation | |||||||||||||||||||||
adjustments |
BALANCE, June 30, | |||||||||||||||||||||
2010, unaudited | 3,092,899 | $ | 3.00 | 52,952,508 | $ | 52.84 | $ | 99,498 |
Retained earnings / Accumulated deficits | ||||||||||||
Statutory reserves | Unrestricted receivable | Contribution | ||||||||||
BALANCE, December 31, 2008 | $ | 4,902 | $ | 10,092 | $ | (960 | ) | |||||
Net loss attributable to | ||||||||||||
controlling interest | (24,455 | ) | ||||||||||
Net income attributable to | ||||||||||||
noncontrolling interest | ||||||||||||
Disposal of subsidiaries | ||||||||||||
Distribution of dividend to | ||||||||||||
noncontrolling shareholders | ||||||||||||
Adjustment to statutory reserve | 260 | (260 | ) | |||||||||
Common stocks issued for | ||||||||||||
compensation | ||||||||||||
Common stock issued for interest | ||||||||||||
payment | ||||||||||||
Common stock issued for repayment | ||||||||||||
of debt | ||||||||||||
Common stock transferred by CEO | ||||||||||||
for compensation | ||||||||||||
Notes converted to common stock | ||||||||||||
Make whole shares issued on notes | ||||||||||||
conversion | ||||||||||||
Reduction of Registered Capital | 960 | |||||||||||
Foreign currency translation | ||||||||||||
adjustments | ||||||||||||
BALANCE, June 30, 2009, unaudited | $ | 5,162 | $ | (14,623 | ) | $ | 0 | |||||
Net loss attributable to | ||||||||||||
controlling interest | (789 | ) | ||||||||||
Net income attributable to | ||||||||||||
noncontrolling interest | ||||||||||||
Distribution of dividend to | ||||||||||||
noncontrolling shareholders | ||||||||||||
Adjustment to statutory reserve | 1,000 | (1,000 | ) | |||||||||
Common stock issued for | ||||||||||||
compensation | ||||||||||||
Common stock issued for interest | ||||||||||||
payments | ||||||||||||
Common stock transferred by CEO | ||||||||||||
for compensation | ||||||||||||
Notes converted to common stock | ||||||||||||
Make whole shares issued on notes | ||||||||||||
conversion | ||||||||||||
Common stock issued for private | ||||||||||||
placement | ||||||||||||
Foreign currency translation | ||||||||||||
adjustments | ||||||||||||
BALANCE, December 31, 2009 | $ | 6,162 | $ | (16,412 | ) | $ | 0 | |||||
Net loss attributable to | ||||||||||||
controlling interest | (7,635 | ) | ||||||||||
Net loss attributable to | ||||||||||||
noncontrolling interest | ||||||||||||
Distribution of dividend to | ||||||||||||
noncontrolling shareholders | ||||||||||||
Noncontrolling interest acquired | ||||||||||||
Adjustment to special reserve | 379 | |||||||||||
Common stock issued for | ||||||||||||
compensation | ||||||||||||
Common stock issued for repayment | ||||||||||||
of debt | ||||||||||||
Common stock transferred by CEO | ||||||||||||
for compensation | ||||||||||||
Foreign currency translation | ||||||||||||
adjustments | ||||||||||||
BALANCE, June 30, 2010, unaudited | $ | 6,541 | $ | (24,047 | ) | $ | 0 |
Accumulated other | Noncon- | |||||||||||
comprehensive | trolling | |||||||||||
income | interest | Totals | ||||||||||
BALANCE, December 31, 2008 | $ | 8,705 | $ | 54,330 | $ | 114,237 | ||||||
Net loss attributable to | ||||||||||||
Controlling interest | (24,455 | ) | ||||||||||
Net income attributable to | ||||||||||||
noncontrolling interest | 12,333 | 12,333 | ||||||||||
Disposal of subsidiaries | (293 | ) | (293 | ) | ||||||||
Distribution of dividend to | ||||||||||||
noncontrolling shareholders | (556 | ) | (556 | ) | ||||||||
Adjustment to statutory reserve | 0 | |||||||||||
Common stocks issued for | ||||||||||||
compensation | 498 | |||||||||||
Common stock issued for interest | ||||||||||||
payment | 558 | |||||||||||
Common stock issued for repayment | ||||||||||||
of debt | 1,800 | |||||||||||
Common stock transferred by CEO | ||||||||||||
for compensation | 138 | |||||||||||
Notes converted to common stock | 24,130 | |||||||||||
Make whole shares issued on notes | ||||||||||||
conversion | 5,566 | |||||||||||
Reduction of Registered Capital | 960 | |||||||||||
Foreign currency translation | ||||||||||||
adjustments | (14 | ) | (1,106 | ) | (1,120 | ) | ||||||
BALANCE, June 30, 2009, unaudited | $ | 8,691 | $ | 64,708 | $ | 133,797 | ||||||
Net loss attributable to | ||||||||||||
controlling interest | (789 | ) | ||||||||||
Net income attributable to | ||||||||||||
noncontrolling interest | 9,230 | 9,230 | ||||||||||
Distribution of dividend to | ||||||||||||
noncontrolling shareholders | (2,749 | ) | (2,749 | ) | ||||||||
Adjustment to statutory reserve | 0 | |||||||||||
Common stock issued for | ||||||||||||
compensation | 1,378 | |||||||||||
Common stock issued for interest | ||||||||||||
payments | 187 | |||||||||||
Common stock transferred by CEO | ||||||||||||
for compensation | 138 | |||||||||||
Notes converted to common stock | 7,949 | |||||||||||
Make whole shares issued on notes | ||||||||||||
conversion | 1,520 | |||||||||||
Common stock issued for private | ||||||||||||
placement | 14,612 | |||||||||||
Foreign currency translation | ||||||||||||
adjustments | (355 | ) | 1,409 | 1,054 | ||||||||
BALANCE, December 31, 2009 | $ | 8,336 | $ | 72,598 | $ | 166,327 | ||||||
Net loss attributable to | ||||||||||||
controlling interest | (7,635 | ) | ||||||||||
Net loss attributable to | ||||||||||||
noncontrolling interest | (5,982 | ) | (5,982 | ) | ||||||||
Distribution of dividend to | ||||||||||||
noncontrolling shareholders | (1,045 | ) | (1,045 | ) | ||||||||
Noncontrolling interest acquired | (1,270 | ) | (1,270 | ) | ||||||||
Adjustment to special reserve | 379 | |||||||||||
Common stock issued for | ||||||||||||
compensation | 1,369 | |||||||||||
Common stock issued for repayment | ||||||||||||
of debt | 2,404 | |||||||||||
Common stock transferred by CEO | ||||||||||||
for compensation | 138 | |||||||||||
Foreign currency translation | ||||||||||||
adjustments | 62 | 164 | 226 | |||||||||
BALANCE, June 30, 2010, unaudited | $ | 8,398 | $ | 64,465 | $ | 154,911 |